IRS Slow Down in Micro Captive Enforcement? Not so Fast…... [ read ]
Late last year, the IRS made a big splash in tax news when it conceded the deductions of micro captive planning in a filed Tax Court case (Puglisi v. Commissioner, available here). Since that time there has been much commentary on whether the IRS' concession marked a shift in its heavy-handed enforcement style against micro captive insurance. Well, the jury remains out, as just last week, IRS Chief Counsel announced plans to hire up to 200 additional attorneys to help combat allegedly abusive transactions. And what does the IRS include in that category? You guessed it: micro captive insurance arrangements.
The National Taxpayer Advocate's 2021 Report to Congress (Part 1)... [ read ]
On January 12th, the IRS National Taxpayer Advocate delivered her annual report regarding the IRS to Congress. The report contains statistical information and recommendations for how the IRS could improve its service and how Congress could assist the IRS in making the suggested improvements. For those of us who assist clients with IRS matters, we were not surprised that the Advocate's report stated that 2021 was the most challenging year ever for taxpayers and the IRS. "
IRS Introduces New Pilot Program to Allow Some Taxpayers to Skip the Line for Letter Rulings... [ read ]
In an early 2019 blog post, we discussed the what and how of requesting an IRS Letter Ruling. The process for obtaining a Letter Ruling can be slow and time consuming and that has been further slowed by the pandemic. In response to "numerous informal comments from taxpayers and practitioners regarding the time required to process letter ruling requests" on January 14th, the IRS issued Revenue Procedure 2022-10 , which immediately implements an 18-month pilot program that allows taxpayers to request fast-track processing (12 weeks) for letter ruling requests.
November Tax Decisions... [ read ]
This blog post summarizes a few noteworthy court decisions released in November2021 that pertain to federal tax matters.
The Tacit Consent Rule and An Unsigned Tax Return... [ read ]
In a recent memorandum opinion, Om P. Soni v. Commissioner, T.C. Memo 2021-137, the U.S. Tax Court discussed a rule rarely seen in tax cases, the "tacit consent rule". The court held that although the taxpayer's wife had not signed the tax return at issue and other related documents, her actions invoked the tacit consent rule and she was liable for the tax deficiency.
Two Recent Tax Court Decisions Regarding Breeding Animals and Hobby Losses: The Miniature Donkey Breeder Had a "Little" Better Facts... [ read ]
The U.S. Tax Court recently issued two memorandum opinions regarding animal breeding activities and whether the taxpayers at issue could deduct expenses in excess of income from the activity. In Skolnick v. Commissioner, the Tax Court found that a pair of horse breeders were not engaged in the activity for profit, and thus the deductions were limited by IRC Section 183(b). In Huff v. Commissioner, the Tax Court found that a miniature-donkey-breeder venture was engaged in for profit, and therefore expenses in excess of income were allowable deductions under Section 162(a).
End-of-Year Change to the Employee Retention Credit Waiting to Snag Some Employers with Penalties... [ read ]
The IRS recently issued Notice 2021-65, offering guidance to employer-taxpayers after the Infrastructure Investment and Jobs Act ("Infrastructure Act") ended the employee retention credit for wages paid by most employers during the fourth quarter of 2021. The Notice also describes circumstances where certain employers may have to repay advance payments of the employee retention credit or be subject to penalties.
October Tax Decisions... [ read ]
This blog post summarizes a few noteworthy court decisions released last month that pertain to federal tax matters.
Finally, IRS Ends Unhelpful Ten Transcripts Per Call Limit... [ read ]
Perhaps you have noticed that it is often impossible to get through to the IRS on its Practitioner Priority Line.
Ghost Employers, Beware!... [ read ]
While famed ghostbusters Venkman, Stantz, and Spengler may not be a threat to what the IRS is calling "ghost employers," the IRS Office of Fraud Enforcement just might be. According to the IRS, "ghost employers" are people who give their employees a W-2 but don't file employment tax returns or provide payroll information to the Social Security Administration.
